15 benefits that you could be providing to your employees tax-efficiently
Free or subsidised mealsFree or subsidised meals, or alternatively a ticket or token used to obtain such meals. So long as this is provided to all staff, and on the business premises or any canteen where meals are provided for staff generally.
Mobile phones and smartphonesSo long as the contract is in the employer’s name, providing a single mobile phone (from employer to employee), or the cost of a single line rental won’t incur any benefit in kind.
Homeworking allowance/expensesWhere an employee regularly works from home under an agreement with their employer, they can receive tax-exempt payments of £6 per week, or £26 a month.
Removal expensesIf your employee is relocating due to taking a job offer from you or being transferred, and their new home is within a reasonable distance from work, then you can meet their removal or relocation costs. Currently, this is up to £8000 per move, tax-free, so long as the conditions are met.
Incidental overnight expensesIf an employee is staying away from home for at least one night during a business trip, then payments can be made to employees, up to certain limits, for personal expenditure.
Professional subscriptionsIf on this list - https://www.gov.uk/government/publications/professional-bodies-approved-for-tax-relief-list-3 - professional subscriptions are not usually taxable, so long as it is paid for by the employer.
VouchersVouchers may be paid to employees as 'trivial benefits’, where provided as an incidental gift to employees, and not as a reward for performance, or contractual payment. It’s important to remember that any vouchers must not be able to be cashed in for money, and not exceeding £50 each in value.
Medical check-ups/Health ScreeningExpenses of providing employees with a maximum of one health screening assessment and one medical check-up a year.
Welfare counsellingSo long as welfare counselling is made available to all employees, this is exempt from tax. However, this does not include advice on finance, tax, leisure, recreation, or legal advice.
Employee parkingParking for a car, motorbike, or bicycle at the employee’s place of work.
Bicycles and cycling safety equipmentSo long as the bicycles and safety equipment are available to all employees and the journey is between home and work, or between workplaces.
Electric car charging The costs of providing the electricity, including the cost of providing a charging point at the employee’s home for a company car or van. If employers reimburse employees for the cost of electricity used at home for charging a company vehicle, it is important that this is accurately measured to be just the electricity used to charge the company car.
Mileage allowancesIf you pay your employees mileage when they are using their personal car or van for business purposes, providing that the amount you pay is below certain limits.
Annual party or similar functionAnnual parties which are open to staff and do not cost more than £150 a head in total to provide.
Pension contributionsAny payment contributions made into a registered pension scheme, on behalf of your employees, are not taxable.
This article gives an overview of some of the examples of tax-free benefits we find most common, however, there are other benefits that are tax-free too, some only available in certain circumstances. Make sure that you are taking advantage of all the benefits you can provide to your employees tax-free!
Get in touch
For more information on how we can help you and your business with issues relating to taxable benefits or any other matter, please contact us at info@oldfieldadvisory.com or call 02476673160 and we will be happy to advise on the best solutions for your business.
Please note: This article is provided for information only and was correct as at time of writing (30/05/24). Any lists and details provided above are not exhaustive and are not intended to be full and complete guidance. No action should be taken without consulting detailed legislation or seeking independent professional advice. Therefore, no responsibility for loss occasioned by any person acting or refraining from action as a result of the material contained in this article can be accepted.
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